celine has $997 in an account. the interest rate is 9% compounded annually. to the nearest cent, how much…

celine has $997 in an account. the interest rate is 9% compounded annually. to the nearest cent, how much interest will she earn in 2 years? use the formula $b = p(1 + r)^t$, where $b$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

celine has $997 in an account. the interest rate is 9% compounded annually. to the nearest cent, how much interest will she earn in 2 years? use the formula $b = p(1 + r)^t$, where $b$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

Answer

Answer:

184.43

Explanation:

Step1: Convert interest rate to decimal

$r = 9%=0.09$

Step2: Identify principal and time

$p = 997$, $t = 2$

Step3: Calculate the final amount

$B=p(1 + r)^t=997\times(1 + 0.09)^2=997\times1.09^2=997\times1.1881 = 1181.5357$

Step4: Calculate the interest

$I=B - p=1181.5357-997 = 184.5357\approx184.54$ (rounded to the nearest cent)